Two weeks into the partial federal government shutdown, U.S. Senate leaders appear close to a deal to reopen the government and raise the debt ceiling while a new joint budget committee negotiates “a replacement for the automatic spending cuts known as sequestration.” After the jump I’ve posted details on last week’s Congressional votes related to funding the federal government and preventing a possible default.
Although Iowa is reportedly the state least affected by the shutdown, because we lack national parks and have few military facilities, thousands of Iowans in the National Guard are still without paychecks. Thousands more who receive benefits through the Women, Infants and Children nutrition program will suffer if the shutdown extends into next month, because WIC is only funded through October.
The lack of a new farm bill arguably affects more Iowans directly than the shutdown does. The latest temporary extension of federal farm programs expired on September 30. At the end of this post, I’ve included some news and comments on efforts to pass a comprehensive farm bill.
HOUSE NEWS
As Bleeding Heartland discussed here, House Republican leaders have refused to bring up a “clean” comprehensive spending resolution to reopen the government. Instead, during the past two weeks they have brought up many “mini-bills” to fund popular federal government programs or agencies. Iowa’s two House Republicans, Tom Latham (IA-03) and Steve King (IA-04) have been on board with the leaders’ strategy the whole way through this crisis. Iowa Democrats Bruce Braley (IA-01) and Dave Loebsack (IA-02) strongly prefer a clean continuing resolution but have been voting for these small spending bills, presumably to insulate themselves against attack ads during the 2014 campaign.
The same pattern continued last week. House leaders brought up many spending bills (roll calls here). Each time, Braley and Loebsack voted with Democrats in failed attempts to “table appeal the ruling of the chair.” Braley and Loebsack then joined Latham, King, and the other House Republicans to vote for the bill on final passage.
On October 7, Braley and Loebsack were among 20 House Democrats to vote for a bill funding the Food and Drug Administration through the 2014 fiscal year.
On October 8, they were among 23 Democrats to support a bill funding the Head Start program.
On October 9, they were among 23 Democrats to support a bill funding the Federal Aviation Administration.
On October 10, they were among 21 Democrats to vote for funding parts of the Homeland Security department that handle border security.
On October 11, they were among 21 House Democrats to vote for a bill funding the National Nuclear Security Administration.
On October 14, they were among 21 House Democrats to support a bill funding the Bureau of Indian Affairs, the Bureau of Indian Education, and the Indian Health Service.
Most House Democrats reject this “mini-bill” approach, because it’s impractical as a way to reopen the government. Rather, the strategy is designed to protect Republicans from any political blowback related to the shutdown. But most House Democrats represent safe districts, whereas Loebsack doesn’t feel entirely secure in the new IA-02, and as a U.S. Senate candidate, Braley will be running for office statewide for the first time in 2014. No candidate relishes the thought of television commercials claiming that he voted against funding the FAA or nuclear security.
A few recent House votes have been unanimous. On October 8, all 420 House members present voted for a bill designed to ensure that non-furloughed “essential” federal government employees will be paid for their work. The following day, all 425 House members voted to fund so-called “death benefits” for the families of deceased U.S. military service members. By unanimous consent, House members extended the work of the United States Parole Commission yesterday.
Iowans split on party lines in one other significant House vote last week. On October 8, Latham and King supported but Braley and Loebsack opposed the “Deficit Reduction and Economic Growth Working Group Act.” The Hill’s Pete Kasperowicz explained the point of that bill:
Republicans said the bill was an attempt to create a framework for talks between the two parties about how to re-open the government and deal with the looming issue of the debt ceiling. […]
But Democrats repeated their argument that Republicans have poisoned the atmosphere for negotiations by insisting on a 2014 spending bill that undermines ObamaCare, something Democrats rejected. They also dismissed the idea of a new committee as a recycled version of other ideas with a storied history of failure in Washington.
Loebsack explained his opposition in this press release of October 8:
Washington, D.C. – Congressman Dave Loebsack released the following statement today after the House Republicans voted to create a second so-called Super Committee.“I opposed the creation of the first so-called ‘Super Committee’ when it was formed in 2011, but was hopeful that this group could come together and find a solution that strengthened our economy and created jobs, while at the same time ending the continued brinksmanship that has plagued Washington,” said Loebsack. “Unfortunately, it did not and has led to one manufactured crisis after another. Given Congress’ recent track record, I have little faith that the result would be any different this time. The only purpose this new group would serve is to once again punt on ending the games that are being played with the economy. There is simply not enough time left on the clock for these continued games. Washington has to take the commonsense, simple steps necessary to end the current manufactured crisis and turn its focus from brinksmanship and political games to growing our economy and creating jobs.”
During the previous Super Committee, Loebsack led the fight in Congress to ensure the committees meetings were open and transparent. He introduced the Deficit Committee Transparency Act to ensure the committee’s process and final product would be free from the question of undue influence and special interest intervention.
“There is no guarantee that any product produced by this ‘Super Committee’ will not be written behind closed doors by lobbyists who have paid to play,” said Loebsack. “Congress must ensure the process, anything produced by the committee and all of its activities are fully transparent. For Americans to be fully confident in any potential decisions the new ‘Super Committee’ may make, Congress must ensure transparency exists in all levels of the process.”
Despite that rhetoric, I suspect most of the House Democrats would go along with the deal Senate leaders are working on, which would involve new joint budget negotiations between now and mid-December.
Loebsack demanded a rapid end to the shutdown in this statement of October 9:
Washington, D.C. – Congressman Dave Loebsack released the following statement after the House voted on legislation to ensure families of service members who are killed while serving our nation will receive death, burial, and travel benefits.
“It is unconscionable and disgraceful that we have gotten to the point where those who have made the ultimate sacrifice in service to our county and the families of our fallen heroes have been put in the middle of reckless political games. Our nation has a moral responsibility to care for the families of our fallen heroes and to honor those who have given the last full measure of devotion. That reckless Washington politics trumped that responsibility is outrageous.
“I strongly supported legislation today to immediately right this wrong. However, in order to ensure that our troops, veterans, and military families receive the full support, care, and benefits they are owed, Congress must immediately take the simple step of passing a clean funding resolution to reopen the government. As a military parent, it pains me to see the families of the men and women who died fighting to protect our country being left out. For their sake, and for many others, we must end this shutdown now.”
On October 10, Loebsack described how the shutdown is affecting his constituents in an open letter to the president.
Loebsack Takes Iowans Shutdown Concerns Directly to President Obama
Washington, D.C. – Congressman Dave Loebsack delivered stories of Iowans who have been affected by the shutdown directly to President Obama during a meeting at the White House yesterday. More than 1,100 Iowans from the Second District have written or called Loebsack since the shutdown began to express their concern and share their personal stories. Excerpts from some of the letters are below. Included with the letters from Iowans, Loebsack also wrote the President to highlight how the shutdown is having an impact on families in the state. A copy of that letter can be found here.
“Many Iowans are needlessly hurting due to the government shutdown. It is at the height of irresponsibility that Iowans are being hurt by reckless Washington dysfunction. All of this could be solved immediately by taking the simple step of passing a clean funding resolution to reopen the government,” said Congressman Dave Loebsack.
“I just got an e-mail from our Crisis Center co-ordinator, informing all of the hotline volunteers, that this shutdown by the Govt means that services from HHS, specifically SAMSHA, are doubtful. This means that the National Suicide Prevention Hotline business offices are furloughed. How do you think that your colleagues would feel if one of their own were in trouble and tried to call Lifeline and be told that Congress has furloughed workers? ‘Try to find another way to find help if you’re feeling suicidal?’ … this hotline shutdown is just plain rotten.”
-Bobbie, Iowa City“I am a counselor working … on a small military base…. I am furloughed, so it’s obviously impacting me, but it’s also impacting my clients, many of whom are active duty service members who have been deployed.
I feel like we government employees are caught in the middle of this very childish drama – through no fault of our own.
Please do your best to end this – I am fed up!!”
– Pella“I work with WIC families and learned early Monday that the offices would not be printing WIC vouchers for families as a result of the shutdown. This means that women who come in every three months for vouchers for milk, infant formula, cereal, bread, and fresh produce will not be receiving them.
Many of these women time their shopping trips to coincide with receiving WIC. They will be out of milk and out of formula, and look forward to getting some bananas and apples for their families. This is terrible news for them.”
-Gale, Davenport
Latham has made few public comments during the shutdown, but his office did send out this press release on October 11 to emphasize that he is doing “everything I can to move us forward and get the full government working again.” Excerpt:
U.S. House-Passed Bills For Critical Government Funding
Washington, Oct 11As a government shutdown unfortunately continues, I wanted to take a moment to again assure the residents of the Iowa’s Third Congressional District I will continue to do everything I can to move us forward and get the full government working again.
I continue to believe that common sense solutions can be achieved rather quickly when Washington sets aside senseless politics, partisanship and pandering, and commits to working together and listening to each other – and even more importantly – listening to the American people.
In the meantime, I have joined with a bipartisan group of Democrats and Republicans to vote for 15 clean continuing resolutions (CRs) that open critical functions of government such as those that help and protect our nation’s veterans and seniors, nutrition programs for our neighbors in need and lifesaving research. All of these clean CRs were supported by every member of Iowa’s U.S. House Delegation – BOTH Republican and Democrat.
Here is the list of bills that have been passed by the House – and all but the two that were signed into law are ready to be considered by a Senate vote that would quickly re-open these critical and non-controversial functions – no conditions attached – while we continue to work toward an agreement on ending the full shutdown: […]
King made headlines for an October 10 interview with CNN in which he denied that there would be serious repercussions if Congress does not raise the debt ceiling by October 17. Speaking to Radio Iowa yesterday, King again denied that the U.S. government would be forced to default on its obligations without quick action on the debt ceiling.
King argues Americans are paying enough taxes to the federal government to cover the interest on the debt.
“We’re spending about eight percent of our cash flow, of our revenue stream, on interest. That’s roughly $18 billion a month. We’ve got some $240 billion or so a month coming in,” King says. “We’re a long ways from defaulting on our debt.”
King, though, says congress cannot go “indefinitely” without voting to raise the so-called “debt ceiling” unless there are significant cuts to the federal budget.
“But reaching the date of October 17 is not a drop dead date. It is not a default date,” King says. “It’s just a date that the government, the Obama Administration has said they think they run out of borrowing capacity.”
King cites last week’s analysis from Moody’s – a credit-rating agency – that concludes the U.S. government “would continue to pay interest and principal on its debt” even if congress fails to raise the debt limit.
In a memorandum released on October 9, Braley called attention to problems facing Iowa’s agricultural sector in light of the government shutdown and expiration of farm programs.
Memorandum:
A Double-Dose of Economic Trouble for Iowa’s Farmers
Effects of the Government Shutdown & Farm Bill Expiration on Iowa’s Ag EconomyPrepared by: John Davis, Chief of Staff, Office of Congressman Bruce Braley
Date: October 9, 2013From the farmers and ranchers who produce grain and raise cattle, to the manufacturers behind the machines, Iowa’s agriculture industry is a source of pride and economic strength. Expiration of the Farm Bill alongside the shutdown of government programs poses a negative threat to Iowans in this industry and to our state economy.
The combination of an expired Farm Bill and a Government Shutdown is putting Iowa’s ag-based economy at risk:
Agriculture is a Major Part of Iowa’s Economy
Iowa is a Top US Producer. The number one U.S. producer of corn, soybeans, pork, and eggs, Iowa had more than 92,000 farms in 2011 – the highest number in the country. [IA Dept. of Agriculture, 10/8/2013]
Agriculture provides 27% of Iowa’s economic activity. “Production agriculture and ag-related industries directly and indirectly employ nearly 320,000 Iowans (or 17 percent of the state’s workforce) and adds $72.1 billion to the state’s economy, or 27 percent of the state’s total economic activity…” [Coalition to Support Iowa’s Farmers, 10/8/2013]
Shutdown and Lack of a Farm Bill Complicate Market Planning, Predictability, and Stability:
Farm Bureau: Government shutdown poses “immediate financial threats” to farmers. [American Farm Bureau Federation Director of Public Policy Dale Moore] “said that the delay on the farm bill is a frustration for farmers, but the closing of the federal government poses immediate financial threats. For example, the latest crop report by USDA is supposed to be published Friday and would be used by the industry to determine prices, he said. If the shutdown continues through that date, then the report won’t come out.’ That’s affecting your bottom line,’ Moore said. ‘Your ability to do your job is hamstrung because of the shutdown.'” [Waterloo Courier, 10/7/13]
USDA reports stopped by shutdown. “Farmers and livestock producers use the reports put out by the National Agriculture Statistics Service to make decisions – such as how to price crops, which commodities to grow and when to sell them – as well as track cattle auction prices. Not only has the NASS stopped putting out new reports about demand and supply, exports and prices, but all websites with past information have been taken down.” [AP, 10/7/13]
There is a Direct Financial Impact on Iowa Farmers and the Iowa Economy:
Shutdown has delayed payments from USDA Conservation Reserve Program. “[Hardin County farmer John] Gilbert participates in the USDA’s Conservation Reserve Program, which pays farmers who leave some land unfarmed as a way to combat soil erosion. Checks to farmers were to be sent out starting this month, but until the shutdown ends no money will be distributed for conservation, according to the National Farmers Union.” [Waterloo Courier, 10/7/13]
The shutdown is blocking farmers from receiving assistance. Under Farm Bill expiration programs with existing funding streams could continue providing technical assistance and payments until the funds run out. However, under the shutdown farmers won’t receive scheduled payments or assistance from reserve programs, and others like the Beginning Farmer and Rancher Program, as long as USDA staff is furloughed and unable to administer the programs. [USDA, 10/8/2013]
On October 1st USDA lost funding for two major programs that support Iowa’s export economy. The Market Access Program and the Foreign Market Development Program both invest in Iowa’s export market and help fund services that give farmers greater access to regional processors, retailers, consumers and other supply chain participants. [Congressional Resource Services, 9/30/2013]
Market Access Program staff will have to delay doing any work on the Market Access Program’s fiscal 2014 grants until the program’s authority is renewed. [CRS, 9/30/2013]
Foreign Market Development Program groups that operate overseas for promotional efforts may have to close offices and lay off staff. A large portion of the Foreign Market Development money goes to rent and salaries. [CRS, 9/30/2013]
Iowa Export Economy provided Iowa with $10.577 billion in 2011. This was a 12.4% increase from 2010 and a 155.7% increase from 2001. Soybeans were Iowa’s top export in 2011, bringing in $2.684. [Joint Economic Committee, 9/30/2013]
Consumers will see Increased Prices, and the entire Supply Chain will be Impacted:
Starting with milk on January 1st permanent law will increase the cost of food. If Congress doesn’t “address the issue in some way before the first of the year, the cost of dairy price supports at that point would double, raising the possibility that milk prices eventually could increase to $8 a gallon.” [Roll Call, 9/25/2013]
Without action the price of milk will increase to $37.28/hundred pounds. The current price is price of $19.20. [CRS, Expiration and Extension of 2008, 9/16/2013] The price jump would negatively impact Iowa families as well as milk processors who make cheese, yogurt, and other milk product producers.
Grain price spikes will follow in the spring and summer. Wheat per bushel would jump from $6.86 per bushel to $13.3 and rice would increase from $14.50 per hundred pounds up to $20.15. Barley would increase from $9.55 per bushel to $11.15. While the market price of corn is currently $5.90 per bushel, permanent law would also force its minimum price to jump from $1.95 to $5.70. [CRS, Expiration and Extension of 2008, 9/16/2013] Grain increases would increase costs for bread and beer, cereal, livestock feed, and grocery stores – impacting the entire supply chain and consumers’ bottom line.
A year from now, few of last week’s skirmishes will be remembered, aside from Braley’s unfortunate off the cuff comment about towel service in the House gym. Republicans running for the U.S. Senate seat Braley is seeking were quick to attack. They will surely revive the comments in countless stump speeches as well as campaign commercials next year.
A forthcoming Bleeding Heartland post will review recent comments about the shutdown by Iowa candidates for the U.S. Senate or House.
SENATE NEWS
Senate Democratic leaders have mostly ignored the mini-spending bills approved by the House. (Senate Majority Whip Dick Durbin compared that funding approach to a “whack a mole” game.) However, Senate leaders made an exception to approve the House bill providing death benefits to military families.
Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell have been trying to work out a deal to reopen the federal government. A lot of Senate Republicans never liked the tactics that led to the shutdown in the first place. In contrast, Iowa’s Chuck Grassley backed efforts to insist on defunding “Obamacare” as a condition for passing a continuing spending resolution. On October 10, Grassley called for more leadership from President Barack Obama.
“The president and Congress must come to the table to negotiate policies to get our fiscal house in order,” Grassley said Thursday. “Presidential leadership is a very important part of the process.
“We won’t address these looming fiscal problems if President Obama won’t even sit across the table.”
Grassley’s comments came as Obama was meeting with House Republican leaders to try to work out a path forward.
To no one’s surprise, those talks went nowhere. House Speaker John Boehner can’t afford to be seen conceding any ground to the president. It makes more sense for senators to reach an agreement first, because support from Senate Republicans could give House GOP leaders political cover for a plan to reopen the government.
Meanwhile, the October 17 deadline for raising the U.S. debt ceiling is fast approaching. Senate Democrats tried over the weekend to start debate on a bill to allow the U.S. to borrow enough to meet obligations through most of 2014. However, every Senate Republican successfully filibustered, blocking a cloture motion to proceed with debate on that bill on October 12.
Senator Harkin blasted King’s comments about the debt ceiling during a conference call with Iowa reporters on October 10.
“I mean that is just bizarre. For example I heard Congressman King say ‘oh we can service the debt’,” Harkin says. “Yeah we can pay the interest on it, but how about paying off the bondholder?”
Harkin says the government is redeeming bonds every day to pay Social Security obligations and the money will eventually run out. He says Republicans are wrong to say the president can take action with the money that is available. “And I heard Congressman King this morning say ‘well the president can prioritize.’ Well okay, what do you mean?,” Harkin asked, “he’s gonna pay Social Security, the bonds that are held by China we tell them to go take a hike? The bonds that’re held by Canada we tell them to go take a hike.”
Harkin says he would not want King or other Republicans handling his finances. “What financial universe did he come from? This is not how the country operates. And he should sit down…he can pick any financial expert he wants in the country to explain to him how this system works,” Harkin says.
Harkin has also said Congressional Democrats should keep pushing for a continuing resolution that funds the federal government at the original levels approved for the last fiscal year–not at the lower funding level since the “sequester” went into effect in early 2013.
Despite the ongoing Congressional dysfunction, senators did vote unanimously last week to confirm a U.S. district court judge.
FARM BILL NEWS
The good news is that over the weekend, House leaders finally named representatives to a conference committee that will search for a compromise between the farm bills approved by the House and Senate. Steve King is the only Iowan among the House-appointed conferees.
The main sticking point in the conference committee will likely be the size of cuts to the U.S. Department of Agriculture’s food and nutrition programs. House Republicans want to cut the Supplemental Nutrition Assistance Program (SNAP), formerly known as “food stamps,” by $39 billion over 10 years. In June, many House Republicans refused to vote for a farm bill that cut such programs by “only” $20 billion. Meanwhile, the Senate-approved farm bill would cut food assistance programs by about $4 billion over ten years. Democrats on the conference committee will resist deeper cuts to SNAP and related programs.
Another dispute facing the conference committee relates to conservation programs. The Senate bill would require conservation compliance for every farmer who wants to receive federally-subsidized crop insurance. House Republicans prefer to give farmers subsidized crop insurance with no strings attached. That approach will lead to more marginal land being farmed and more associated soil erosion and water pollution.
Statement from Steve King, October 12 (emphasis in original):
King Named House Farm Bill Conferee
Washington, DC – Congressman Steve King released the following statement after House Speaker John Boehner named the House Farm Bill conferees:
“I am thankful Speaker Boehner has appointed conferees to advance the Farm Bill process,” said King. “Now that conferees have been appointed in the House and Senate, it is time to come together to finalize the 2013 Farm Bill. I look forward to robust conversations with the Senate conferees and moving forward to reconcile our differences. It is time to give the farmers of America the five years of federal agriculture policy predictability they deserve by finally sending a Farm Bill to the President’s desk.”
Statement from Dave Loebsack, October 12:
Washington, D.C. – Congressman Dave Loebsack released the following statement today after House leaders finally allowed the farm bill to go to conference to reconcile the differences with the Senate. Iowa’s farmers and rural communities have been operating without a farm bill intact since October 1st, when the previous farm bill expired and reverted back to the permanent law from 1938 and 1949.
“Today’s action further demonstrates Congress’ dysfunction. Our farmers and rural communities are currently facing the double whammy of the closure of USDA resources because of the shutdown on top of an expired farm bill. The current situation is unacceptable.
“Moving the farm bill to conference is the least that should happen to go forward and finally help our farmers and rural communities, Iowa’s economy, and those who rely on nutrition assistance. The fact that our farmers and rural communities have been operating without a farm bill is inexcusable. House leadership should have taken action months ago. Now that the House and Senate will finally be able to meet to work out the differences between the two bills, they must act without further delay to develop a long-term, comprehensive farm bill that can be signed into law.”
As mentioned above, last week Braley release a memo on the problems the lack of a farm bill is creating for Iowa’s economy. He has repeatedly demanded that House leaders move forward with the farm bill. His office released this statement on October 9 (emphasis in original).
With Farm Bill Expired, Braley Seeks Action from Speaker Boehner on Bipartisan Farm Bill
Washington, D.C. – Rep. Bruce Braley (IA-01) today once again pressed Speaker Boehner to begin negotiations and work with the Senate to reach an agreement and pass a five-year bipartisan Farm Bill.
“Iowa farmers are facing a double dose of economic trouble right now – the Farm Bill expired on September 30, and the government shutdown is causing what the Farm Bureau is calling ‘immediate financial threats’ to farmers.“Even though Congress remains in a stalemate over the government shutdown, Democrats and Republicans have expressed a willingness to negotiate over the Farm Bill. That’s why today, I’m calling on Speaker Boehner again to start negotiations on a Farm Bill so the House and Senate can find a compromise on a five-year, bipartisan Farm Bill. My hope is that by working to move a Farm Bill forward, Congress may find a willingness to break the logjam on other issues.”
Due to Congress’ inaction, the Farm Bill expired on September 30 and farm programs have reverted to those in the 1949 version of the law.
Last month, the House passed another partisan version of the Farm Bill that only addressed the Supplemental Nutrition Assistance Program (SNAP). House leadership said once a bill addressing SNAP was passed they would appoint House members to the conference committee to work with Senate members to reach an agreement on a bipartisan Farm Bill.
When there was a delay in appointing conferees, Braley called on Boehner to follow through on his promise to move towards negotiating a Farm Bill compromise before it expired at the end of September.
Over the past several months, Braley has repeatedly urged Speaker Boehner to put the bipartisan Senate bill on the House Floor. The Senate has passed a comprehensive, bipartisan Farm Bill earlier this summer. In July, Braley asked the Speaker to postpone August recess until the House passed a long-term, bipartisan Farm Bill.
Full text of Braley’s letter follows; a copy can be downloaded at the following link: http://1.usa.gov/GLHAOA
—October 9, 2013
The Honorable John Boehner
U.S. House of Representatives,
Speaker
H-232 U.S. Capitol
Washington, DC 20515Dear Speaker Boehner,
Having completed consideration of Farm Bill legislation in the House, the Senate has once again appointed conferees to try to move towards passage of this important legislation.
On a single day, our nation not only experienced the government shutdown, but again felt the immediate impact of the Farm Bill expiration. Without this legislation, the USDA is incredibly limited in continuing programs for farmers and ranchers who work diligently each day across the United States to feed the world and tend to our land.
I am committed to working with you and our colleagues in the Senate to find agreement on a budget bill and on a five-year Farm Bill. Both of these bills are critical to our nation’s economy and I am confident that it is possible for you to negotiate a budget bill and appoint conferees to complete the Farm Bill.
We must work together to pass a Farm Bill for the producers across America who rely on the certainty and predictability provided by a Farm Bill. You claim to want to negotiate on the budget disagreements, yet you refuse to appoint conferees to negotiate on the Farm Bill. I ask, once again, that you act immediately to appoint conferees and pass a full five-year Farm Bill for the American people.
Sincerely,
Bruce Braley